Zambia’s inflation rate rises to 15.2% in June, as growth rate falls to 2.2% in Q1

Zambia’s annual inflation rate has surged to 15.2 percent in June, up from 14.7 percent in May, according to the Zambia Statistics Agency (Zamstat).

Zamstat General-Statistician, Goodson Sinyenga, attributed the increase to rising prices of both food and non-food items.

He noted that the annual food inflation rate for June was recorded at 16.8 percent, compared to 16.2 percent in the previous period, indicating an average price increase of food items by 16.8 percent from June 2023 to June 2024.

“This outcome was mainly due to increases in the prices of bread and cereals such as breakfast mealie meal, roller mealie meal, samp, rice and bread flour,” Sinyenga explained.

Speaking at the Zambia International Trade Fair in Ndola on Thursday, Sinyenga also reported a drop in the country’s economic growth.

The growth rate fell to 2.2 percent in the first quarter of this year, compared to 4 percent in the same period last year, primarily due to a dry spell.

Zamstat’s recent economic statistics compilation for the first quarter of 2024 revealed this decline in growth.

Additionally, the country recorded a trade surplus of K3 billion in May, up from K2.4 billion in April.

Read more: Zambia records K2.7 billion trade surplus, as inflation rises 13.8% (see other important indices)

This improvement was driven by a notable 20.9 percent increase in export earnings from intermediary goods, mainly copper.

Exports, primarily consisting of domestically produced goods, rose by 19.9 percent to K27.1 billion in May 2024, compared to K22.6 billion in April.

The increase in export earnings was largely due to a 20.9 percent rise in intermediary goods, particularly copper cathodes.

Imports also grew by 19.5 percent, reaching K24.2 billion in May 2024, up from K20.2 billion in April.

This was mainly the result of a 30.3 percent and 29.1 percent increase in import bills for intermediary goods like cobalt oxides and hydroxides, as well as capital goods.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.